Northeast Electrical Distributors/Eagle Electric Supply, a subsidiary of Sonepar USA, has agreed to buy Ralph Pill Electric Supply (RPESCO), Boston, one of New England’s largest independent electrical distributors.
With 184 employees, RPESCO has 16 locations in Massachusetts, New Hampshire and Maine. The company is ranked as the nation’s 60th largest electrical distributor on Electrical Wholesaling’s 2007 Top 200 Electrical Distributors listing. Ralph Pill Electric was established in 1919 by Ralph Pill, a Lithuanian immigrant. His son, Alfred E. Pill, has served as president for the last 50 years.
Ralph Pill Electric is known for its aggressive branch expansion strategy throughout New England and as an early and ardent supporter and member of Affiliated Distributors, King of Prussia, Pa. The company is also well-known in the New England market for its panel board shop.
“The merger between our two family-owned businesses is critical for the sustainable development of RPESCO,” said Alfred Pill. “Both companies share the same values of profitable growth and quality personnel, and have a passion for customer service. While it is difficult to relinquish control of our business, I recognize that joining forces and gaining the resources of NorthEast/Eagle will provide wonderful growth opportunities for our people, continuity for the company, and a great platform for future expansion.”
Last year, New England lost its two largest independent electrical distributors in just one week when Rexel, the largest electrical distributor in the world, bought Capitol Light & Supply Co. (CLS), Hartford, Conn., and US Electrical Services, Exton, Pa., a company run by Richard Worthy, former CEO of Sonepar North America, bought Electrical Wholesalers Inc., Hartford, Conn.
The acquisition of Ralph Pill will give Northeast Electrical Distributors/Eagle Electric a total of 33 locations in New England.
Matt Scarborough, president of New England’s Johnson & McGill Inc., an independent manufacturers’ rep based in North Abington, Mass., said he was not surprised to hear about the acquisition since the sale of the company had been in the rumor mill for quite some time. He did not expect the buyer to be Northeast Electrical Distributors/Eagle, because the two companies have some overlap in Boston. He believes the acquisition will broaden Northeast’s offering on the north shore of Boston. “Northeast is not necessarily the strongest player there,” he said. “They do have a store up in Dover, N.H., but nothing really between Boston and Dover. Ralph Pill definitely fills that void.”
With $2.4 billion in 2006 U.S. sales, more than 200 locations and 4,200 employees, Sonepar is now the fifth-largest full-line electrical distributor in the United States. Through organic growth and acquisitions, the company grew its U.S. sales by 56 percent in 2006. Its 2007 acquisitions of Crawford Electric Supply, Dallas, Fairview Electrical Supply Corp., Fairview, N.J., and Ralph Pill Electric Supply, coupled with some healthy organic growth will help the company top $3 billion in sales this year.
Several big independent electrical distributors remain in New England, including Granite City Electric Supply Co., Quincy, Mass.; Independent Electric Supply, Somerville, Mass.; NESCO/Needham Electric Supply Corp., Canton, Mass.; Rockingham Electrical Supply Co. Inc., Newington, N.H., Standard Electric, Wilmington, Mass., and Yale Electrical Supply Co. Inc., Boston. All of the companies were listed in EW’s 2007 Top 200 ranking.
Scarborough said he believes the New England market will have two types of electrical distributors: large companies with at least $200 million in sales, and smaller niche players with approximately $20 million in sales. Several distributors are expanding their operations through acquisitions or branch openings in a move to avoid being acquired by other distributors, he said. He cited moves such as the recent acquisition by NESCO/Needham Electric Supply Corp. of Yankee Electric Supply, Winooski, Vt. (See Electrical Marketing, June 29, 2007).